Emerging Evidence on Student Funding: A Case of a South African Historically Disadvantaged Institution

Abstract

Decreasing real value in fiscal allocations to higher education is crippling the sector’s ability to effectively respond to its broader social and economic transformation mandate enjoined in the South African Constitution. Improving student access, retention, and throughput rate are leading priorities of the Department of Higher Education and Training (DHET) to achieve this mandate. Student funding, therefore, has been a shared responsibility of both the private and public sector since the dawn of democracy. However, the COVID-19 pandemic has significantly changed the status quo, especially with eroded income bases for most businesses and households. Despite recovering financially, the priority of the private sector has been to maintain stability and regain market share. How sustainable is student funding for historically disadvantaged institutions (HDIs) in the post-COVID epoch? The study uses descriptive analysis of quantitative data of registered first-time entering students (FTENs) at Walter Sisulu University (WSU) for 2021 and 2022 to decompose the funding dynamics and further quantify the size of FTEN debt. The study shows that about 17 per cent of the FTENs do not receive funding and that 99 per cent of the funded population are catered for by the National Student Financial Aid Scheme (NSFAS). The remaining 1 per cent is catered for by non-governmental organisations (NGOs), local municipalities, and some government developmental entities. The study also shows that the size of FTEN debt incurred yearly is above R60 million and is likely to increase as the real value of government financial support decreases. The study proposes a stringent mobilisation of private sector participation, through policy commitment, to student funding to improve access.